A special tax commission set up by the government outlined two proposals on Friday for hiking taxes to pay for reconstruction efforts in areas devastated by the March 11 disaster. The total amount of tax increases would generate 11 trillion yen.
At the outset, the commission considered a consumption tax increase, but Prime Minister Yoshihiko Noda asked for that not to be considered at this time, NHK reported.
The first option calls for delaying a previously proposed 5% corporate tax reduction for three years, and raising income tax by 5.5% for 10 years, or 11% for five years. The second option also recommends shelving the 5% corporate tax reduction for three years, but the income tax hike would be 4% along with tobacco tax increase of 2 yen per cigarette.
NHK reported that residential taxes are likely to be increased by 10,000 yen as well.© Japan Today